Orient Paper and Industries Ltd would demerge its cement business and list it on the stock exchanges by April next year. The firm plans to transfer the business to Orient Cement Ltd, and Orient Paper shareholders will get one new share of the cement company for each share they own. Kotak Investment Banking advised Orient Paper on the transaction. Orient has a cement manufacturing capacity of 5 mtpa (million tonnes per annum) with a 50 MW power plant. Cement contributed about 53 percent to its total sales in FY11. The company is in the process of setting up a 3 mtpa greenfield project in southern Karnataka state at an investment of 17.5 billion rupees and expects it to commence production by mid-2014. The firm plans to raise the funds via internal accruals as well as loans and said it was also looking at additional sites in India to expand cement capacity. " We firmly believe oversupply situation is a short term phase which will soon be overcome. The company is looking to expand cement capacity to 15 million tonnes over the next few years from 5 million tonnes now", said M L Pachisia, managing director, Orient Paper and Industries Ltd.